announces changes of multiple mortgages to the same borrower.
Calling all investors. For loans delivered after March 1, 2009 FNMA is relaxing the 4 properties maximum rule, to a total for ten properties.
The guidelines will be that a 720 fico score is required and the combined loan to value will be 70 to 75 percent, depending on the type of property. They are also changing the total house costs from principal, interest, taxes and insurance (PITI) to principal, interest, taxes, insurance, plus home owners association dues, special assessments, ect. (PITIA)
Is this the thing that the market has been waiting for? Increasing the number of properties for qualified investors is a big step in the right direction. Fannie Mae has finally recognized the realities of the market place. By allowing qualified investors to take advantage of the low interest rates, it can only help to locate a bottom of the market. This is a bold move by FNMA to open up the restrictive lending practices we have seen over the last couple of years. Lets hope this will lead to a few more changes in the future.
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Mark -
This is a step in the right direction, Mark. If they make sure they keep up credit qual on the investors who buy in multiples.
DEAN & DEAN'S TEAM CHICAGO
I do think this will help in that arena. It has been hard for investors to find funds and buy some really great deals out there.
thanks for the update - that is great news for qualified investors
Mark,
Great news. This should help to get some of the lower end properties off the market.
Rich
Mark thanks for the post. I hadn't heard that, but it's good news. Rules are changing by the day it appears.
I think this is very much a step in teh right direction. I myself am looking to start invest this year probably wont make it to 10 properties but on my way :)
Thanks for the info Mark. It seems like a proactive step and hopefully will get a lot of properties off the market this year.